Beyond the pause in India’s IPO market

India’s startup ecosystem entered 2025 with momentum and optimism. A strong pipeline of companies was gearing up to tap public markets, building on the capital flows and breakthroughs of the previous year. Yet, over the past few months, market turbulence has cooled some of that excitement. Equity indices are down. Investor sentiment has softened. IPOs that once seemed imminent have been delayed.

Despite the correction, optimism among private investors remains intact. India has delivered meaningful exits, reinforcing confidence that strong companies can find liquidity even through market cycles. Private market participants continue to view India as a structural growth opportunity.

For founders, however, 2025 demands a different playbook. It’s no longer about rushing to list—it's about preparing deliberately for when the markets reopen. As the saying goes: when there is a storm, good fishermen repair their nets. That’s exactly what this moment calls for.

Rather than chasing timing, the focus has shifted to readiness. Companies are raising capital pre-emptively, building governance muscle, and beginning to operate with the maturity of a public company. Because when the window opens again—and it will—those who prepared during the pause will be the first to step forward.

A Market That Still Commands Optimism

Despite the sharp correction in public markets, optimism about India’s startup ecosystem remains strong.

India has consistently demonstrated its ability to create durable businesses and deliver meaningful capital returns, reinforcing its position as a long-term investment destination. For private market investors, the narrative has evolved beyond short-term momentum. It's now about backing companies with the fundamentals to survive cycles and emerge stronger.

The structural opportunity remains intact. Even as indices have cooled, India’s tech and fintech sectors continue to show resilience. The foundation being laid today is setting the stage for a deeper, more sustained public market cycle ahead—one driven not by hype, but by businesses built for endurance.

Reframing Founder Ambition

For founders, this phase demands a fundamental shift in mindset.

Going public is no longer the ultimate goal; it’s merely a milestone in the broader journey of building a lasting business.

In the face of delayed IPO timelines, it’s critical not to view postponements emotionally. Instead, founders must use this time to double down on execution—setting sharper internal goals, fostering a high-performance culture, and operating with the rigor that public markets demand.

Those who embrace this shift will find themselves better positioned when the opportunity arises. Public markets reward discipline, predictability, and resilience. Founders who start practicing these values internally, long before a listing event, will move faster and more decisively when conditions turn favorable.

Preparation Is the Real Catalyst

In the current environment, it’s not just liquidity that will drive success—it’s preparation.

Founders who take the time now to fix operational weaknesses, strengthen financial performance, and raise pre-IPO capital where needed are giving themselves a critical advantage. Balance sheet strength is no longer optional; it’s foundational. This moment isn’t just about surviving a soft market—it’s about preparing to lead in the next cycle.

The readiness being built now—quietly, behind the scenes—will determine who shapes the next wave of IPOs, and who is left reacting when the tide turns.

Building Public Company Discipline Starts Now

Discipline isn’t something that can be switched on the moment a company goes public. It must be ingrained long before a business faces quarterly reporting cycles, investor scrutiny, and governance expectations.

The strongest companies are already behaving like public firms—setting internal financial targets, enforcing operational accountability, and building governance frameworks that inspire trust.

Operating with this maturity now serves two purposes. It improves near-term business performance and strengthens internal decision-making. And it sends a clear signal—to investors, employees, and customers—that the company is being built to last, not just to list.

Founders who wait for the IPO bell to start behaving differently will be outpaced by those who began the transition early.

(The author Sandeep Patil is Partner & Head of Asia at QED Investors. Views are own)